Long one of the world’s more prominent bitcoin exchanges, Bitstamp received a publicity boost today with the news that it had been granted a license to operate as a fully regulated payment institution (PI) in Luxembourg.
In statements, Bitstamp touted the license as one that enables it to become the first "fully licensed" bitcoin exchange in Europe.
The news, which had been rumored for weeks, received varying reactions from market observers, with remarks divided between those who saw Bitstamp’s license as a boon for an industry still trying to shake its association with crime, and those who felt that Bitstamp may face more hurdles in its attempt to offer services throughout the European Union.
Positive sentiment was perhaps best voiced by Chris Skinner, the founder of a new venture capital firm focused on blockchain, who stated that he believes the news is evidence of the "increasing acceptance" of cryptocurrencies.
Skinner told CoinDesk: "The fact that an EU member state gave that license to Bitstamp, a firm who had security issues, shows the increasing credibility of the bitcoin community. This is one to watch." This view was echoed by Mangrove Capital Partner Michael Jackson, who said that the news should be viewed as a validation of the Bitstamp team.
Still, others questioned whether other countries would immediately recognize Bitstamp’s Luxembourg payment institution license.
Adam Vaziri, founder of FinTech-focused legal consulting firm Diacle, indicated that other countries in the EU may decide that the license does not correspond to the business activities Bitstamp is conducting, and that further negotiations could be expected.
News of BitStamp’s new license coincided with the launch of BTC/EUR trading on the exchange. The startup stated that its license would not go into effect until 1st July. Business implications In comments, the news was most often compared to the e-money license obtained by bitcoin-based […]
